Dover Downs Gaming and Entertainment eked out a profit in the third quarter as the one-casino company felt the pressure of a saturated market.
Gaming revenues of $43,736,000 were down 10.7% compared to the third quarter of 2012 as competition from Maryland and Pennsylvania took its toll. Other operating revenues of $6,337,000 were up 7.2% compared to the third quarter of 2012. The improvement was from increased food and beverage revenue and slightly higher cash room revenue. Occupancy levels in the Dover Downs Hotel were approximately 93% for the third quarter of 2013.General and administrative costs of $1,354,000 for the third quarter were down 7.5% compared to last year.
Net earnings were $223,000, compared with $1,147,000 for the third quarter of 2012.
Denis McGlynn, the company’s CEO stated: “We mentioned last quarter that the state had formed a Lottery & Gaming Study Commission to examine the Delaware gaming industry and to make recommendations to the state legislature regarding the division of gaming revenues among the state, casinos, vendors and horsemen. The state’s casinos have all had an opportunity to make presentations to this new commission and we hope to have further input into the commission’s fact gathering and deliberations. The commission’s recommendations to the state legislature are expected to be made on or before January 31, 2014.”
In addition to the lower revenues from stiffer competition, Dover Downs has seen the state take a higher percentage of revenues as a way to balance its budget during the financial crisis. The state’s three casinos hope to see a lowering of that percentage.
Dover is the only casino to publicly report financial results. Harrington Raceway and Delaware Park are not publicly traded.
Gaming operations consist of approximately 2,500 slots and table games including poker. The hotel is Delaware’s largest with 500 rooms/suites and amenities including a spa/salon, concert hall and 41,500 sq. ft. of event space. Live, world-class harness racing is featured November through April, and horse racing is simulcast year-round. Professional football parlay betting is accepted during the season. Other amenities include restaurants bars/lounges and retail shops.
